16th Oct 2008 07:00
16 October 2008
Jelf Group plc
("Jelf" or "the Group")
Pre-close Trading Statement
Jelf Group plc, an independent full-service brokerage, which supports businesses and related individuals, will announce its preliminary results for the year ended 30 September 2008 in late January 2009.
The Board is pleased to provide the following pre-close trading update:
The Group has traded strongly over the period with revenues for the year to 30 September 2008 expected to be in line with market expectations. While more challenging market conditions have had an impact on margins, the Group still expects to report a strong growth in profits of approximately 40% when compared with the previous year. Operating cash flow generation remains strong and our recent acquisitions have all performed in line with expectations.
Market Conditions
Good new business from our Employee Benefits business has been generated by successful cross-selling into the clients of our acquired businesses. Our Healthcare business has also performed well.
The commercial insurance sector remained competitive during the last year. It is our experience that insurance premium rates have varied between different sectors. However, in view of the worsening economic climate, our operating assumptions are that rates will remain flat through 2009 and that a rise in business failures will lead to a corresponding rise in lapse rates.
The market for Wealth Management advisory services has been most affected by the equity market turmoil; this has been partially offset by strong performance in business protection and pension re-structuring. Overall, given the current economic and market uncertainties, we remain cautious about growth prospects for our Wealth Management business. The Group's Wealth Management business, however, has over £1 billion of funds under advice, of which nearly £200 million has been transferred across to industry / wrap platforms that produce recurring income.
Growth Strategy
During the year, the Jelf Group has continued to make progress against its objectives of delivering profitable growth through organic growth and acquisitions, and we have:
continued to see additional cross-selling in areas such as Employee Benefits and Healthcare into those clients of acquired businesses
continued to integrate and re-brand the smaller acquisitions under the Jelf brand
continued the drive for efficiency and best practice across the Group to deliver a positive impact on future margins
financed all deferred consideration payments from operational cash-flows
continued to successfully apply a co-ordinated broking strategy across the enlarged Group
The Jelf Group will continue to pursue this strategy throughout the coming financial year.
Key Acquisitions
The Jelf Group made the following strategic acquisitions during the year:
January 2008 - Manson Insurance Group (Manchester)
April 2008 - Clarke Roxburgh Group (West Midlands)
April 2008 - Argyll Group (South East)
The post-completion plans for each of these businesses have been completed and all have performed in line with management's expectations.
The Board will provide a detailed trading report when it announces preliminary results in January 2009.
Alex Alway, Chief Executive commented: "Over the past year we have seen the Jelf Group make strong progress across all areas of the business. While current market conditions mean that a more cautious approach to growth is required, significant opportunities exist for the Group and we view the future with confidence."
ENDS
ENQUIRIES
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Jelf Group Plc Alex Alway, Group Chief Executive |
01454 272 713 |
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Cenkos Securities plc Stephen Keys |
020 7397 8924 |
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Pelham PR Polly Fergusson |
020 7743 6362 0777 585 1562 |
About Jelf
Jelf Group was founded by Christopher Jelf in 1989. Today, the Jelf Group offers a range of business consultancy services principally in the areas of insurance, healthcare, commercial finance and employee benefits, in addition to wealth management services for individuals. It has offices across the UK.
The Group advises over 25,000 corporate clients. These clients cover the spectrum from significant public companies to small owner managed businesses. Core Jelf Group clients are medium-sized owner-managed businesses, typically employing up to 250 staff with a turnover of up to £10 million.
Related Shares:
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